Samsung, the world’s leading smartphone maker, has officially announced the closure of its remaining factory in China. In an email on Friday, South Korean tech giant Samsung Electronics said they would no longer manufacture smartphones in China.
In an email sent to international media on Friday, Samsung said the smartphone manufacturing factory in China’s southern Huizhou was closed last month. The decision to stop Samsung Electronics operations in Huizhou was a complex one. Samsung reported the matter last Wednesday (September 2), according to a report by Reuters.
Last June, the production capacity of the factory in Hangzhou was reduced. Earlier, Samsung stopped production of a factory at the end year of 2018. According to research firm Counterpoint, the business of Chinese smartphone makers such as Xiaomi, OnePlus and Huawei is growing very fast. As a result, Samsung could not benefit China. Samsung’s market share fell 1 percent in the first quarter of this year. Year of 2013 the first quarter of the year, their market share was 15 percent.
Samsung Company Indoor
Reuters reported that due to rising labor costs and economic slowdown in China, like many other South Korean companies, Samsung has decided to move their mobile phone factory from China.
Previously, another world-renowned technology maker Sony decided to move its smartphone plant from Beijing to a smartphone factory in Thailand only. However, Apple is still continuing its production in China. In this regard, Samsung said they were forced to make such difficult decisions to increase efficiency. However, their marketing in China will continue.
In a statement, the company aforementioned, “The product happiness to the Chinese works are going to be replaced with factories in alternative elements of the globe as per market demand.” Samsung’s aforementioned 6,000 workers in China’s factory had produced more than 63 million phones in 2017 years.
Samsung has already expanded its production systems and infrastructure in countries like India and Vietnam, where production costs are lower. Samsung has established the world’s largest mobile handset factory in Noida, where production has already begun.
For years, their factories were shifting from China to neighboring countries, especially to Vietnam. Last year, they closed a factory in Tianjin, northeast of China.
Samsung says, ‘The production equipment of the closed factory will be distributed to global manufacturing factories. This decision will be taken given global product strategy and market demand. ”The world’s leading electronic product maker is now facing intense competition with China.